Dokumen - Tips Inventory-Configuration PDF

8/17/2019 Inventory Conﬁguration
A Step by Step Guide to the SAP MM Inventory Management and Physical Inventory Configurations
Table of Cont ents

Objective ............................................................................................................................................... 3
IMG Menu – The Starting Point ........................................................................................................... 4
Start of the SAP MM Inventory Management Configurations............................................................. 5
The Basic Material Master Configuration : Units of measurement...................................................... 5
Where does the user maintain the UOM? ............................................................................................. 7
Industry Type for Material Master........................................................................................................ 8
Delete or Add in Storage Location for the new Plant ......................................................................... 11
General Plant Settings in Inventory Management .............................................................................. 11
Define the Attributes of System Messages ......................................................................................... 13
Start of the Number Range Configurations ........................................................................................ 15
Define Number Assignment for Accounting Documents................................................................... 15
Define Number Assignment for Material and Phys. Inv. Docs .......................................................... 18
Define Number Assignment for Reservations .................................................................................... 19
Start of the Individual Fields IMG Settings........................................................................................ 20
Field Selection for Goods Movements Initial/Header Screens........................................................... 20
Field
Field Selection
Selection for
per MIGO ...................................................................................................................
Mvt Type ............................................................................................................. 21
21
Define Screen Layout for Movement Type ........................................................................................ 22
Settings for Transactions and Reference Documents ......................................................................... 24
Create Storage Location Automatically.............................................................................................. 26
Set Manual Account Assignment for Movement Type ...................................................................... 27
Maintain Copy Rules for Reference Documents ................................................................................ 28
Set Up Dynamic Availability Check................................................................................................... 29
Generate Physical Inventory Documents for Goods Movements....................................................... 32
Allow Negative Stocks ....................................................................................................................... 33
Set Missing Part Check ....................................................................................................................... 34
Default the “Delivery

For GR-Based Completed”
IV, Reversal of GR Indicator
Despite Invoice......................................................................................
........................................................................... 35
36
Record Reason for Goods Movement................................................................................................. 37
How to Define, Copy or Change a Movement Types? ....................................................................... 38
Default Print Control for Material Document..................................................................................... 41
Define Stock List Display for MMBE ................................................................................................ 47
Define Valuation Class ....................................................................................................................... 49
Configure Automatic Postings to G/L Accounts ................................................................................ 51
Storage Location Indicator to allowed/disallowed Physical Inventory Freezing ............................... 58
Configuration for Vendor Consignment ............................................................................................. 59
Business Process Flow for Vendor Consignment............................................................................... 60
The Initial Inventory during Implementation ..................................................................................... 63
Static versus dynamic data conversion ............................................................................................... 66
A Sample note on Inventory Balance Conversion.............................................................................. 66
Appendix A: The Inventory Goods Movement Configuration Links Explain ................................... 67
Appendix B: Restrict the Storage Location from any Goods Movement........................................... 68
Appendix C: Allows/Disallowed Goods Movement Posting to Previous Period............................... 70
Appendix D: How to Archive the Materials Documents? .................................................................. 71
Appendix E: Configure the Cycle Count in SAP................................................................................ 76
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Objective
The objective of this paper is to provide the SAP MM consultant with a step-by-step guides
at configuring the SAP MM Inventory Management module. It is structure in the form of
how-to-do configurations method.
When you d o the SAP configuration, sequence is not r eally i mport ant as long as all
the MM Inventory Management modules Features that need to be used have been
configured.
Notes:
Initial IMG Action : Required (this are dynamic data which are unique to the company)
Initial IMG Actio n : Usually Not required (it depends on the customer requirement)
Initial IMG Actio n : Not required (normally this kind of configuration is quite static, most of
the customer will accept the SAP default and may request for changes after going live for a
period of time)
IMG Menu – The Startin g Point

Before doing any SAP Configuration (or IMG), all SAP consultants MUST be aware of the
transaction SPRO. This transaction code is the heart of the whole SAP configuration.
Click the button and you will be shown all the configuration tree for the
various SAP modules like SD, PP, FI, CO etc.
Transactio n SPRO
The SAP IMG configu ration t ree for all the modu les
Start of the SAP MM Inventory Management Config uratio ns

Now, you will go through each of the SAP Inventory Management Configurations to get
your SAP Inventory transaction functioning. After all the configurations are completed,
Appendix A: (The Inventor y Goods Movement Confi guratio n Lin ks Explain) will link all
the related configurations for you so that you can understand the relationship.
The Basic Material Master Confi guratio n : Unit s of measurement

Initial IMG Action : Usually Not Required
As a rule of thumb, always RECOMMEND the user to set the base unit of measure for a
material to the smallest unit that can be used. That is, don't set it as FT (foot), but set it
as IN (inch). Never set EA as base unit for something that can be divided and consumed in
smaller quantities.
Please take note that y ou CANNOT change your Base Unit of Measure onc e there are
any OPEN TRANSACTIONAL POSTING done by the user. For e.g. Available Stocks,
Open Purchase Order, Open Production Order, Dependent Reservations already exists,
Open Sales Order etc.
If you try to change, a SAP message will appear asking you to click the
button. It will list all the OPEN DOCUMENTS to you.
Tip: Determi ne the low est UOM as the Base Unit of Measure
Transaction : Menu Path : IMG – General Settings – Currencies – Check units of

CUNI measurement
Click the button Units of measurement to see the UOM settings.
Where does the us er maintain t he UOM?

For this IMG settings, the user will maintain it in the Material Master Record (MM01/MM02).
Maintain the Base unit of measure

Transaction : SAP Menu Path : Logistics – Materials Management – Material Master –
MM02 Material – Change – Immediately – Select Basis data 1
Maintain the UOM Conversion

Transaction : Menu Path : Logistics – Materials Management – Material Master –
MM02 Material – Change – Immediately - Select Basis data 1 - Additional
Data – Units of measure
For e.g. assuming that the Materials Master Base UOM is SH - Sheet and you need to
transact in KG. Input the X (Denominator) and Y (Numerator) for Conversion to Base Units
of Measure column and the system will automatically calculate the Number column for you
once you hit the Enter key.
Please note that you may enter only whole numbers in the numerator and denominator
fields; that is, if 3.14 m² correspond to one piece, you must enter integer multiples (314 m²
= 100 PC). In this case, the quotient is therefore 100/314 (the numerator being 100 and the
denominator 314).
Indust ry Type for Material Master

Industry type are used for classifying your company industry sectors. SAP used it to
control the Field attributes o f yo ur Material Master . There are no other usage.
The SAP default industry sectors are :

• A for plant engineering and construction
• C for the chemical industry
• M for mechanical engineering
• P for pharmaceuticals
Note: You cannot change the industr y type after it i s being inpu t.
The only way to change the indust ry ty pe to is to Flag the materials for deletion and
archive it. Then create a new material with the correct in dustr y type.
Define new o r Change the existing Industry Type

IMG Shortcut : Menu Path : IMG – Logistics General – Material Master – Field
OMS3 Selection - Define Industry Sectors and Industry-Sector- Specific Field
Selection
The Field r eference above points to the Fields in Tcode MM01/MM02/MM03 where the
user used f or m aintaining their Material Master Record.
If you intend to create a new Field ref., it has to begin with a y or z.
IMG Shortcut : Menu Path : IMG – Logistics General – Material Master – Field
OMS9 Selection - Maintain Field Selection for Data Screens
Double click on Field ref.
Double click on and you will see the Fields of each Material Master.
The attributes of Field Sel. Group have a higher p rior ity than the Field reference.
For e.g. Field selection grp 1 contains the following fields which are all Required Entry as
you can see from the above screen.
Default the Material Industry Type

If you have only one industry type, you can default and hide it. This saved the users the
need of entering the industry type. When there are different Industry Sector for different
users, you can also teach them to default it in MM01 – Default s -> Industr y secto r
IMG Shortcut : Menu Path : IMG – Logistics General – Material Master –

OMT3U Configuring the Material Master – Maintain User Settings
Delete or Add in Storage Location fo r th e new Plant

Initial IMG Action : Required
A storage location is the place where stock is physically kept within a plant. Some
companies will break their area to be managed by different Plant and Storage Location and
you will define IMG Storage Location Plant by Plant.
Each Plant may have different sto rage location requirement to track the mov ement
and quantities of st ocks. For e.g. defective stocks, warehouse stocks etc. For naming
convention, you can recommend them to use the building number follows by two characters
to represent the inventory type. For e.g. Building 9, the storage location for Finished Goods
can be 09FG, Defective Goods can be 09DF etc.
Storage Location is a required fields when user do entries for Goods Movement related
transaction code such as MB1A – Goods Issue, MB1B – Transfer Posting, MB1C – Other
Goods Receipts etc. User must know where they want to keep the Inventory.
Configure the Storage Location

Transaction : Menu Path : IMG – Enterprise Structure – Definition – Materials
OX09 Management - Maintain Storage Location
Click the New entries button to enter a new Storage Location.
General Plant Setti ngs in Inventory Management

IMG Action : Not requir ed
You shoul d not make any IMG settings using this overall maintenance screen. Use this
screen for checking purpose as you can view all the Individual Configuration on a single
screen.
Menu Path : IMG – Materials Management – Inventory Management and Physical

Inventory - Plant Parameters - Double click t he Plant and you’ll be able to see the
Plant Inventory Settings
Double click o n the Plant to view the next screen.
Define the Attr ibut es of System Messages

Initial IMG Actio n : Not required
In any of the Inventory Management goods movement transactions posting, the system
will issues messages to the user screen to inform the user about certain system
responses or data situations (for example, a message indicating that the order item is
flagged "delivery completed").
An example is given in Appendi x B: (Restric t t he Storage Location fr om any Goods

Movement) to see how you can make used of the Attributes of the System Messages.
There are three attributes where you can define the type of system message for a version:
 W – You can set a warning message and after reading the message, the user is allowed
to hit enter and proceed with the entries and save the record.
 E – You can set an error message and the user have to correct the mistake or the
system will not allow the user to proceed further or to save the record entry.
 Space - No message will be issue to the user.
Transaction Menu Path : IMG - Logistics – Materials Management – Inventory Management

OMCQ and Physical Inventory – Define attributes of System Messages - Settings for
System Messages
From the System Messages screen, you can see that the SAP default for all messages that
can be controlled are stored in version 00 and the Inventory Management, the application
area M7 is predefined.
You are allow to create a new version (for example, ZZ) and this is maintained as a
parameter ID MSV in the user master record, thus representing a user or a user group.
Transaction : Menu Path : IMG - Logistics – Materials Management – Inventory Management

SU01 and Physical Inventory – Define attributes of System Messages - Maintain Users
Step to configure the SAP System Messages

Proceed as follows to control messages according to your needs:
1. Copy the messages (for which you would like to change the type) into a separate
version (for example, ZZ ).
2. Change the type of these messages in the new version.
3. Allocate the corresponding version to the users as follows: Define a value (for example,
ZZ ) for the parameter ID MSV in the user master record by selecting Goto ->
Parameters .
Please note that if you did not specify any parameter ID for a given user, the system uses
version 00. If there are no entry maintain in the table for a certain version the default
message is a warning.
Start of the Number Range Configur ations

In the SAP Inventory Management modules, for every valuated post ing, the system will
auto create a Material and a Financial Document. These documents will be pre-
assigned with a range of running numbers. During the initial number range IMG, no action
is required on your side (unless your company want to changed it) as SAP have pre-
configured the system with a set of pre-defined running numbers.
Define Number Ass ignment for Account ing Documents

Initial IMG Action : Might b e required for A ccount ing Documents
For every Valuated Inventory Posting, two documents (a material document and a
accounting document) will be generated automatically by the system.
By default, SAP has already defined a range of unique number for each document type.
Companies are allowed to change them if they prefer another set of numbers.
Transaction : Menu Path : IMG – Materials Management – Inventory

OMBA Management and Physical Inventory - Number Assignment –
Define Number Assignment for Accounting Documents
Configure t he Financial Document Type wit h t he relevant Number Range

Financial Accounting documents are split into document types in order for the system to
differentiated document number assignment, which is the basis for distinguishing between
the various accounting operations. A number range is assigned to each document type. In
a company code, you have to define number intervals for each number range and fiscal
year. In inventory management, the transaction determines which document type is used.
To view the Financial Accounting Document Types:
 Click Financial accounting document types
 Double click on Type AA to view the details
 Copy down the Number range No For e.g. 04
To maintain the number assignment for accounting documents.

- Click the Financial accounti ng num ber ranges button
 Input your company code and click

 Click to input the Number range
 For e.g.
In the standard SAP Inventory Management System, no change is required as the following
the document types have been predefined:
• WA for goods issues, transfer postings, other goods receipts
• WE for goods receipts with reference to purchase orders
• WF for goods receipts with reference to production orders
• WI for inventory differences

• WL for goods issues with reference to deliveries (SD)
• WN for net posting of goods receipts
• PR for revaluation documents
Click the Goods issue document type and you can view the default Doc. Type that have
been pre-defined.
You can see that each document type has been assigned a number range. In company
code 0001, number intervals are defined for each number range both for the current and
the previous fiscal year.
• Number range 49 with the year-related interval 4900000000 to 4999999999 is assigned
to the document types for all goods movements, except goods movements with
reference to purchase/production orders.
• Document type WE is used for goods receipts with reference to purchase orders and
production orders. This document type is assigned number range 50 with the year-
related interval 5000000000 to 5099999999.
Please note that the net postings of goods receipts (document type WN) are not active in
the standard system. If you want to post goods receipts net, you have to assign document
type WN (instead of WE) to the transaction MB01.
• Document type WI is used for posting inventory differences. This document type is
assigned the number range 01 with the year-related interval 0100000000 to
019999999999.
Define Number Ass ignm ent for Material and Phys. Inv. Docs
The Physical Inventory module is used to adjust your company Stock balance after the
company Physical stock-take. Physical Inventory Documents are created to captured the
stock data entries.
No action is required unless you wish to change the number assignment for the following
documents:
 material documents
 physical inventory documents
Transaction : Menu Path : IMG – Materials Management – Inventory Management and

OMBT Physical Inventory - Number Assignment – Define Number Assignment for
Material and Phys. Inv. Docs
Refer to OMBA – Allocate Document Type to Transaction
Define Number Assignment for Reservations

You can only used internal number assignment for reservations.
The default number range 01 with the interval 0000000001 - 9999999999 has been pre-
defined for reservations.
No action is required from you unless your company preferred another range of numbers.

OMC2 Physical Inventory - Number Assignment – Define Number Assignment
for Reservations
(a) OMJK - Maint ain Number Range Interval
(b) No. range res/dep.rq
Start of t he Individu al Fields IMG Setting s

As you probably know, SAP is a pre-written software that caters to many companies
around the world. There will b e data fields that your company do es not required,
opti onal or fields th at are mandatory. Therefore, SAP provides you the flexible to control
those non-critical fields so that each companies can set their own fields attribute although
they may used the same transaction screen to input the data.
Field Selection for Goods Movements Initial/Header Screens

The goods movement screen, MB1A, MB1B, MB1C contains many fields for data entry.
Some companies may prefer to hide those un-used fields not required for any data input.
Note that the field selection for the item screens depends on t he movement type and is
confi gured in s eparate steps.
For testing, click Hide for field Document header text.

Goto transaction MB1A, MB1B, MB1C and have a look.
Change it back to Input and check again.
Double click on the Modifiable field for more fields.
Field Selecti on for MIGO

MIGO is the new enjoy transaction code for Inventory Goods Movement. It combines the
transaction MB1A, MB1B, MB1C and MBST
The IMG here allows you to change the attribute of those fields in MIGO.

OMJX Management and Physical Inventory – Settings for Enjoy
Transactions – Settings for Goods Movements (MIGO) – Field
Selection for MIGO
To change to field attribute, just tick accordingly on the one of the option buttons.
Field Selectio n per Mvt Type

Here you maintain all the settings for field selection by movement type. This step replaces
the activity Define Screen Layou t for the Enjoy transactions. The settings from Define
Screen Layout are adopted in these settings automatically so that you do not need to
maintain new entries here.
You can specify for each field whether it is an optional entry or a mandatory entry. In the
table, you see all fields that are visible. You can access the setting Field Invisib le by
deleting the appropriate entry from the table.
There is no distinction between different special stock indicators in these entries. Special
stock fields are always suppressed automatically.

Inventory – Settings for Enjoy Transactions – Settings for Goods Movements (MIGO) –
Field Selection for Mvt Type
Defin e Screen Layout for Movement Type

Here you set the field selection for the movement types including goods issues and transfer
postings.
When creating a goods movement, the field selection determines which fields
• can be filled (optional entry)
• must be filled (required entry)
• are suppressed fields

In Inventory Management, the field selection depends on the movement type.
The field selection defined for a movement type is valid for entering goods movements and
reservations.

OMBW Physical Inventory – Goods Issue / Transfer Postings – Define Screen
Layout
OMCJ Physical Inventory – Goods Receipt – Define Screen Layout
OMJ9A Physical Inventory – Automatic Movements – Define Screen Layout
This is the first scr een. Double click on the Movement Type
This is t he Second screen. Double click o n any of the Select grou p Field e.g General
data
This is the Last screen where you change the Field Input Options
Settin gs fo r Transactions and Reference Documents

No action is required here unless you want to limit the number of selectable transactions
(goods receipt, goods issue, and so on), reference documents (material document, delivery
note), and movement

transaction type thatMIGO_GO,
MIGO, MIGO_GI, the systemMIGO_GR
propose for
every reference document in
For example in MIGO, you can see the Selectable posting transaction and Reference
Documents type on t he top left of the screen.
Transaction : SAP Menu Path : SAP menu – Logistics - Materials Management
MIGO – Inventory Management – Goods Movements (MIGO)
If you need only certain transactions (for example, goods receipts or goods issues), you
can choose from the following preset transactions code:
 MIGO - Used to enter all goods receipts.
 MIGO_GR - Used to enter goods receipts from external procurement.
 MIGO_GO - Used to enter goods receipts for production orders.

MIGO_GI - Used to enter goods issues.
Configure the settin gs for tr ansactions and reference docum ents:
1. Choose the transaction with which you want to enter goods movements.
2. For each transaction, define which transactions and reference documents you want to
reference when you post goods movements.

Inventory – Settings for Enjoy Transactions – Settings for Goods Movements (MIGO) –
Settings for Transactions and Reference Documents
To
left configure
screen. the Reference document, select a Tcode and click Reference document of the
Just Tick or Untick the Active column and the Reference document will appear or
disappear accordingly when the user use the transaction MIGO - Goods Receipt fo r
Purchase Order .
Create Storage Locatio n Auto matically

Initial IMG Actio n : Usually Not r equired
The default setting for all the storage location data is created automatically for all inventory
goods movement that results in a change in the INVENTORY STOCK BALANCE.
The setting does not apply to Create Reservation transaction movement (MB21). This is
because no actual goods movement has taken place during materials reservation.
Note: if you need to create a reservation to a stor age location that have not been
created, you can use transaction MMSC to cr eate the storage location.
For each configuration, first of all you have to allow automatic creation per plant and then
you have to explicitly allow the creation of storage location data for each movement type.
A tick means storage location created automatically and vice versa.
Auto matic Creatio n of Stor age Location for Goods Issues and Transfer Posti ngs
Specify whether the automatic creation of storage location data is allowed for goods issues
and transfer postings. This is advisable if you work with negative stocks and a material's
first
goods movement
issue, formay be an movement
example, outward movement. Note
type 202 or 262,that theconsidered
is not reversal movement for but
as an issue a as
a receipt.
If you only use the automatic creation of storage location data for reversals of goods
issues, you do not have to allow negative stocks. The storage location data is only created
if the quantity is posted to 'standard' storage location stock. It is not created for receipts into
a special stock (for example, into sales order stock).

OMB2 Physical Inventory - Goods Issue / Transfer Postings – Create Storage
Location Automatically
Auto matic Creatio n of Storage Location fo r Goods Receipts
Specify whether the automatic creation of storage location data is allowed for goods
receipts. This is advisable if you want to post a goods receipt without having to maintain
the storage location view of the material master record in advance.
The storage location data is only created if the quantity is posted to 'standard' storage
location stock. It is not created for receipts into a special stock (for example, into sales
order stock).
OMB3 Physical Inventory - Goods Receipts – Create Storage Location

Automatically
Auto matic Creatio n of Storage Loc ation fo r Autom atic Goods Movements
Specify whether the automatic creation of storage location data is allowed for automatic
goods movements. This is advisable for goods movements via Shipping or when you post
physical inventory differences, for example. The storage location data is only created if the
quantity is posted to 'standard' storage location stock. It is not created for receipts into a
special stock (for example, into sales order stock).
OMJ8 Physical Inventory - Automatic Movements – Create Storage Location

Automatically
(a) Plant
(b) Movement Type
Set Manual Account A ssi gnment fo r Movement Type

In the R/3 System, account assignment is predefined via the automatic account
determination facility. When you enter material movements that are assigned to a cost
account, you can enter the account number manually. In doing so, you change the account
assignment predefined as offsetting entry for inventory posting.
Define the movement types for which you want the G/L account to be ready for input.
This happens to movement type “ 201 – Consumpti on for c ost center from warehouse” ,
where user are required to enter the cost center which is tied to a G/L a/c.
You can specify this four choices:
These are the IMG transaction and Menu path where you can configure the Set Manual
Account Assignment. You can have a look but no changes are necessary.
OMB6 Physical Inventory – Goods Issue / Transfer Postings – Set Manual
Account Assignment
OMCH Physical Inventory – Goods Receipt – Set Manual Account Assignment
OMJ9 Physical Inventory – Automatic Movements – Set Manual Account
Assignment
Maintain Copy Rules fo r Reference Documents

Configure whether the items of the reference document are proposed as selected on the
item selection list when entering a document with reference, or not. In the standard
system, the items are propos ed selected.
The user can delete the check marks manually on the item selection list if she/he does not
want to adopt some items. It is useful to set this indicator if usually all or most of the items
of the reference document are to be adopted.
Specify for every tr ansaction whether the it ems of t he reference document are to be
pre-selected or not b y making a Tick on Untick on the Selection Bo x.
Inventory - Goods Issue / Transfer Postings – Maintain Copy Rules for Reference
Documents
Inventory - Goods Receipt – Maintain Copy Rules for Reference Documents
Set Up Dynamic Availabilit y Check

Dynamic availability check is link to the SAP Material Requirement Planning system. The
system checks whether the material to be withdrawn is available and issues a message, if
necessary.
In Inventory Management, two types of availability check are carried out.
 availability check during the entry of reservations
 availability check during the entry of goods movements
The availability check is only carried out if:

• the material master record contains a checking group for the availability check
(MM01/MM02 - MRP 3 View)
• a checking rule is assigned to the transaction in Customizing

OMCP Physical Inventory - Goods Issue / Transfer Postings – Set Up Dynamic
Availability Check
OMCM Physical Inventory - Goods Receipt – Set Up Dynamic Availability Check
Figure 1: The Main Menu for Availability Check
You can define

• for each movement type which type of message is issued (object Movement typ e)
• which checking rules are supported (object Checking rule)
• per checking group and checking rule: which objects (documents, stocks, material
requirements) are included in the availability check (object Define checking r ule)
• per transaction of Inventory Management: which checking rule applies (object
Transaction codes)
In the standard system, the message type A (warning in t he case of non-availability,

otherwise no message) is set for all relevant m ovement types.
The Movement Type button :
For Inventory Management, the checking rule 03 is provided.
The checking rules are also used by other applications (Sales & Distribution) and can also
be maintained by them. If you want to define new checking rules or change existing rules, it
is recommended that you contact and work with the other applications consultants for Sales
& Distribution, Material Requirements Planning.
Steps to carri ed out:

1. Define the movement types for which an availability check is to be carried out and which
type of message is issued.
2. Check the checking rule that you want to use in Inventory Management. Define a new
checking rule, if necessary, and define for each checking group which objects are
included in the availability check for this checking rule.
3. Check the availability checking rules for each transaction. Assign other checking rules
to the transactions, if necessary.
In the Define Checking Rule button , Double click o n the Check Rule for the Individu al
Settings
The IMG settings is straight for ward. Just tick or unti ck those stocks or documents
you want to inc lude or exclude during the MRP checking . Normally, accept the
standard default and change it as the user get famili ar with t he system.
In the Transaction code butto n, accept t he standard default checking rule assigned.
Changes are usually not necessary fo r ot her tcode.
Generate Physical Inventor y Documents f or Goods Movements

Define for each plant and movement type whether a physical inventory document is
automatically generated when posting a goods movement. You can create a physical
inventory document in addition to the material document at the time of a goods movement.
This function is important when inventory differences are posted from the Warehouse
Management System. These inventory differences are thereby documented in Inventory
Management with a physical inventory document.
In order to create an inventory document in addition to a material document for a goods

movement, the following conditions must be met:
• In the plant, you must define the transaction/event type WV for automatically generated
physical inventory documents. You must define the document number assignment for
this transaction/event type.
• Automatic generation of physical inventory documents must be allowed for the
movement type.
You may only enter the transaction/event type WV (inventory difference from Warehouse
Management system).
In the R/3 System, automatic generation of physical inventory documents is allowed for
movement types 711 to 718.

OMCC Physical Inventory - Goods Issue / Transfer Postings – Generate Physical
Inventory Documents for Goods Movements
OMJC Physical Inventory – Automatic Movements - Generate Physical Inventory
Documents for Goods Movements
1. Specify the plants for which you want the R/3 System to create a physical inventory
document. Enter transaction/event type WV for these plants.
2. Check the movement types for which you want a physical inventory document to be
created. Set the number assignment for the given transaction/event type.
Al lo w Negati ve Stoc ks

Although negative stocks are allowed by the system, most companies prefer not to used
this function as it is not a good business practice to draw stocks in advance. Most auditors
will also disapprove of this bad Inventory Movement practice. It is similar to your Bank
Overdraft facility where you are allowed to draw more than what you have in your Bank
Balance.
You can configure whether negative stocks are allowed for the unrestricted-use stock in the
valuation area, in the plant, and in the storage location.
The default IMG setting is negative sto cks are not allowed.
If negative stoc ks are needed in your company, proceed as follows :

1. Set the indicator Neg. stoc ks allowed in the valuation areas in question. (A valuation
area can be a plant or a company code, depending on the configuration.)
2. Choose a valuation area and specify per plant whether negative stocks are allowed for
special stocks.
3. Choose a plant and specify in which storage locations of the plant negative stocks are
allowed.
4. Save your settings.
5. Afterwards, you must change the plant data of all materials for which negative stock
balances are allowed. The indicator for negative stocks is contained in the Sales:
general/plant view of the material master record (MM01/MM02).

OMJ1 Physical Inventory - Goods Issue / Transfer Postings – Allow Negative
Stocks
You can allow Negative Stoc ks at Plant or Storage Location level. To defin e at
Storage Location Level, select the Valuation area and click the word Storage location
on th e left screen.
Set Missi ng Part Check

With the aid of the missing parts check, the system checks at the time of a goods receipt,
other receipt, or transfer posting whether the material posted is a missing part. If so, the
system issues a warning message and sends a mail message to the responsible MRP
controller in the plant.
Acti vatin g the mis si ng parts check

The missing parts check is only carried out if it is active in the plant
• a checking rule is defined for the transaction

• a checking group is defined for the availability check in the material master record (MRP
data)

OMBC Physical Inventory - Goods Receipt – Set Missing Parts Check
OMJD Physical Inventory – Automatic Movements – Set Missing Parts Check
(b) Transaction Code
Default the “ Delivery Completed” Indicator

Define the system to automatically suggests th e delivery com pleted indicator for

goods receipts if the delivered quantity li es within the under/over delivery tol erances.
The "delivery completed" indicator has the following effects:

• The item is r egarded as closed, even if the tot al quantity was not delivered.
• A furth er delivery is n ot expected, may, however, arrive.
• In the next goods receipt, the item appears on the selection list but has no selection
indicator.
• The item can be reorganized even if the total quantity has not been delivered.
Even if the "delivery completed" indicator has not been set, an item is considered closed
once the total quantity has been delivered. This means that the "delivery completed"
indicator is not necessary in this case.
Specify for each plant whether the R/3 System proposes the "delivery completed" indicator
automatically.

Inventory - Goods Receipt – Set “Delivery Completed” Indicator
For GR-Based IV, Reversal o f GR Despite Invoice

Here you specify for each movement type whether, with GR-based invoice verification, a
reversal with reference to the purchase order or a return delivery can be entered, even if
the invoi ce relating t o the goods receipt d ocument has already been posted.
If reversals are not allowed, you must cancel the invoice before you enter the reversal of
the goods receipt or the return delivery.
If reversals are allowed, you can post the material document and enter cancel the invoice
at a later time. If you do not wish to cancel the invoice, you can enter the goods receipt with
reference to the reversal document or the return delivery, so that the reference to the
invoice continues to exist.
Tips : Majori ty of t he companies will not allow ed material docum ent to be cancelled
witho ut fi rst canceling th e Invoices as this can cause data inconsi stencies after a
period of ti me.

OMBZ Physical Inventory - Goods Receipt – For GR-Based IV, Reversal of GR
Despite Invoice
Record Reason for Goods Movement

Initial IMG Action : Usually Required
When you enter a goods movement, you can only enter reason which have been defined
for the movement type here. Most of the time only movement type that deduct stocks need
a reason as a form of control.
Reason for Goods Movement are a required field when posting Goods Issue with MB1A
for movement type 551 – Withdrawal for scrapping. Normally, in a company, the Quality
Department will be the one that are allowed to used this movement type as they are the
one who approved whether the materials should be scrapped or not.

OMBS Physical Inventory - Movement Types – Record Reason for Goods
Movements
(a) Control Reason – Accept the default , clic k the Reason field to change the options
(b) Reason for Movement – Click New entries bu tton to enter the Reasons
How to Define, Copy o r Change a Movement Types?

When you enter a goods movement, you must always enter the movement type. The
movement type has important control functions in Inventory Management. It is essential for:
• updating the quantity fields
• updating the stock and consumption accounts
• selection of the fields used for entering documents
• printing
• goods receipt/issue slips
Note : Never tri ed to create a new movement type wit hout c opyin g an existing one.
Additional movement type are sometimes required to differentiate the different purpose of
the Goods Movement Transaction. For e.g. Companies may create additional movement
type to differentiate between an Internal Scrap 551/552 or Customer Scrap Z51/Z52.

OMJJ Management and Physical Inventory - Movement Types – Copy,
Change Movement Type
Al ways copy an existin g movement t ype to th e new o ne you wish to create. Don’t
forget to copy the reversal movement type and change it. To copy, just select the
movement type you want to copy and click the button.
Double click on the Movement Type to view the detail IMG Settings
For e.g. if you Tick the Automatic PO Field, a purchase order is created automatically at
the time of goods receipt.
For example, if you create a new movement type Z51 copy from 551, don’t forget to copy
the reversal Z52 copy from 552.
Default Print Cont rol f or Material Document

After saving their records, users are allowed to print the goods receipt/issue slips for the
goods movements. In this IMG, you can make the following settings:
• on which printers the goods receipt/issue slips can be printed
• whether these printers support barcode and multiple printout
• for which movement types goods receipt/issue slips can be printed
• which printer is located in a specific plant/storage location and how the printout of an
output type is controlled for this printer

OMBR Management and Physical Inventory – Print Control – General
Setting
First find out the Print version that is use for the Inventory Transaction code
Depending on the Print Method you used, you may need to check the Print Item settings for
this Movement Type.
Inventory – Print Control –
OMB5 - Maintain Print Indicator for Goodds Recept Documents
OMB4 - Maintain Print

OMJL - Maintain Print Indicator
Indicator for
for Automatic
GI/TransferMovements
Posting Documents

Once you have the Print Version and Print Item Setting, proceed to MN21 to create the
condition records for which Output Type you want to used to activate the printing.
MN21 / MN22 Physical Inventory – Output Determination – Maintain Conditions –
Create/Change Condition: Inventory Mgmt
For eg. WA03
For this example:

Trans./event type – WA (look at the Title bar, only the first 2 char. Is required)
Print version – 3 (Collective goods receipt/issue slip)
Print item – 1 (Material document printout)
Double click on line item Material document printout
Leave the rest as it is, only specify the Number of messages (1 for print once, 2 for print
twice etc.)
Other Print Setting s you need to ch eck:

M706 Physical Inventory – Output Determination – Maintain Output Type
Double click on WA03 to reach the next screen:
Check the Print param. to ensure that it ties with the Print Method you used.
For the default p rint out of the Material Document, you can specify One of the method.
Most will use Method 3 which is the easiest or Method 1 (can be a bit tricky due to the
Storage Location).
Method 1:
Transaction
OMJ3 : Menu Path
Physical : IMG ––Materials
Inventory Management––Printer
Output Determination Inventory Management
Determination – and
Printer Determination by Plant/Storage Location
Specify the Plnt, Sloc, Output Device, whether to print Immediate or Not
Method 2:
OMJ4 Physical Inventory – Output Determination – Printer Determination –
Printer Determination by Plant/Stor. Loc./User Group
Specify the Plnt, Sloc, User gr p, Output Device, whether to print Immediate or Not
Method 3:
OMJR Physical Inventory – Output Determination – Printer Determination –
Printer Determination by Output Type/User
Specify your Condition type
Specify the User Name, Output Device, whether to print Immediate or Not
Although you have configure the default printer for the user, when they want to print the
Material Document Slip automatically after saving the record, they have to tick the Print
field indicator in order for the configuration to work.
The Print field indicator can be pre-selected if the parameter NDR (Print via output control
in MM - Inventory management) has been set to X (capital letter) in the user master record
(SU01).
Define Stock L ist Display for MMBE

In this step, you define which fields are displayed in stock lists (transaction MMBE).
The R/3 System distinguishes between stock lists using version numbers. For each
version num ber, you can open up to three window s in which yo u can display
different stock li sts. For each window, you can define up to three stock types (for
example, blocked stock returns or unrestricted-use stock).
The following list versions are preset in the standard SAP R/3 System:
• 1 standard display, long
• 2 standard display, short
• 3 special display
Acti on fo r you :
Maintain the default settings as follows:
1. Under Display versio n
• Assign a version number for each version
• Define which fields are to be displayed
2. Under Rules for displ ay of stock balances, assign the following to each version
number:
• The windows you want to open
• The stock types in the columns
3. Under Detail sc reen for stock balance display, define additional stock categories.

OMBG Management and Physical Inventory – Reporting – Define Stock List
Display
The Rules for Stock Balance Displ ay button decide the column in MMBE
To check your: Configuration:

Transaction Menu Path : SAP Menu – Logistics - Materials Management –
MMBE Inventory Management – Environment – Stock – Stock Overview
Define Valuation Class

If a user creates a material in MM01, he must enter the Material's Valuation Class in
Acco unti ng View 1. The R/3 System uses your default settings to check whether the
valuation class is allowed for the material typ e. The valuation class is a group o f
materials with th e same account determination.
If a transaction is to be posted to different accounts depending on the valuation class,

create an account determination for each valuation class in the step Configure Automatic
Postings (transaction OMWB).
The valuation classes allowed depend on the material type. Several valuation classes are
generally allowed for one material type. A valuation class can also be allowed for several
material types.
The link between the valuation classes and the material types is set up via the account
category reference (transaction OMSK). The account category reference is a combination
of valuation classes. Precisely one account category reference is assigned to a material
type.
The Valuation Class is very imp ortant b ecause it define the General L edger Ac count
code that will be posted in Financial Accounting . This will impact the Profit and
Loss Account.
Valuation Class cannot be change once transaction pos ting begins fo r th e Material.
If you want to change it, all Open Sales Order, Purchase Orders, Produc tion Orders
etc. have to be close.
Transaction : Menu Path : IMG – Materials Management – Valuation and Account
OMSK Assignment – Account Determination - Account Determination Without
Wizard – Define Valuation Classes
1. Define the Account category reference

2. Define the Valuation class for which Account category reference
3. Define the Material type for which Account category reference
Acco unt categor y reference
Valuation class
Material type for wh ich Ac count category r eference
Configure Automatic Postings t o G/L Account s

For this IMG settings, you will configure the link between Inventory Management and
Financial Accounting.
What do you mean by automatic po sting s?

For many years, SAP has study and fine tune the Business Accounting practice around the
world. The current Inventory programs is able to Debit or Credit correctly any transaction
postings that are made to the system. The programs will find all the necessary G/L
accounts codes that have been configured by you and automatically post it to the relevant
Financial Entries. For e.g.: Posting lines are created in the following accounts in the case
of a goods issue for a cost center:
o Credit - Stock account (Inventory Deducted)
o Debit - Consumption account (Increase in Consumption)
During inventory goods movement, the user does not have to enter a G/L account, since
the R/3 System automatically finds the accounts to which postings are to be made using
the following data:
 The Company Chart of accou nts

In the R/3 system, every company is identified by a company code and each Strategic
Business Unit in the company is identified by a plant. User are required to entered a plant
for every data entry and the System will determine the chart of accounts which is valid for
the company code. The Finance department user will maintain the Master record for the
Chart of Account in transaction “FS00/FSP0/FSS0” before you define it inside the IMG
under the automatic account determination individually for each chart of accounts.
 Valuation groupi ng co de of the Valuation Area (per Plant)

Group the various valuation areas into a single valuation group help to reduce the number
of entries both in the configuration and creation of G/L accounts code.
For example:
With Valuation Grouping, you only need one entries for the configuration irregardless of
how many valuation area you have.
Valuation Group Valuation Class G/L Account
0001 01 12345
0001 02 12345
Without Valuation Grouping, you will need to maintain each entry for every valuation area
you have.
Valuation Group Valuation Class G/L Account
0001 01 12345
0001 01 65432
0002 02 67890
0002 02 56565
Grouping all t he Valuation area as one is t he recommended configur ation method.
Configure the Valuation Class Groupin g

Transactio n Menu Path
OMWM IMG – Materials Management – Valuation and Account Assignment –
Account Determination - Account Determination Without Wizard – Define
Valuation Control
OMWD IMG – Materials

Account Management
Determination – Valuation
- Account and Account
Determination WithoutAssignment –
Wizard – Group
Together Valuation Areas
To use the Valuation grouping, first set Valuation grouping code to active in “OMWM”.
You can now do the grouping in “OMWD”. For example, you group all the Valuation area to
the same valuation group.
Val. Area CoCode Company name Chrt/accts Val.grpg.code
AA 0001 ABC Engineering Ltd XYZ 0001
BB 0001 ABC Engineering Ltd XYZ 0001
CC 0001 ABC Engineering Ltd XYZ 0001
 Transaction/event k ey (internal processing key)

The posting key refers to the inventory movement that the user has to specific during any
inventory posting.
entries record Theinto
to post movement type will enable the system to determine the correct
the system.
 Account g roupin g (only for offsetting entries, consignment liabilities, and price
differences)
The posting transaction " Offsetting entry for inventory posting" is used for many
different transactions posting (for example, goods issue, scrapping, physical inventory),
which are assigned to different G/L accounts (for example, consumption account,
scrapping, expense/income from inventory differences). Therefore it is necessary to divide
the posting transaction according to a further key: account grouping code. An account
grouping is tied to each movement type in inventory management which make use of the
posting transaction " Offsetting entry for inventory posting" . In the posting transaction
" Offsetting entry for inventory posting" , you must assign a G/L accounts for every
account grouping. If you wish to post price differences to a different price difference
accounts in the case of goods receipts for purchase orders, goods receipts for orders, or
other movements, you can define different account grouping codes for the transaction key.
With the account grouping, you can also have different accounts for consignment liabilities
and pipeline liabilities.
 Valuation c lass of material or (in case of spli t valuation) the valuation type
The valuation class allows you to define automatic account determination that is dependent
on the material. The user will define the valuation in the Material Master (MM02 –
Accounting 1 View ) decided by Finance which will tied each Valuation class to a G/L
Account code. For example: you can post a goods receipt of a raw material to a different
stock account
the same than if the
transaction goods
for both receipt were
materials. You for
cantrading goods,
achieve this even though
by assign ingthe user enters
di fferent
valuation classes to the materials and by assigni ng diff erent G/L accounts t o the
posting transaction for every valuation class. If you do not want to differentiate
according to valuation classes you do not have to maintain a valuation class for a
transaction.
The G/L account assignments for the charts of accounts INT and the valuation grouping
code 0001 are SAP standard.
Configure the Valuations Class Li nk to the G/L Acco unt

Transaction : Menu Path : IMG – Materials Management – Valuation and Account
OMWB Assignment – Account Determination - Account Determination Without
Wizard – Configure Automatic Postings
(a) At the Initial scr een, click th e Account As signm ent button t o view this s creen.
(b) Double above line item to this screen

Define the Valuation and G/L Account code. If you have multiple Company codes, then
you have to maintain for multiple Chart of accounts.
When you fi rst enter this s creen, the system will promp t you to enter the Chart of
Accounts . Subsequently, if you wish to change the Chart of accounts click Edit – Change
chart/acct.
Notice the first column Valuation modif., if you did not group the Valuation Area, then
you’ll have to define each Valuation Area for each Valuation class for each G/L Account. If
you have four Valuation Area, then everything will be multiply by four.
At the above screen, click the Rules button and you are allowed the followings options on
how your G/L Accounts are determined. Most common options will be to tick the
followings:
Take note of the General modifi cation col umn i n GBB
You can find the relevant Accoun t Modificatio n for each of the movement types.
IMG Shortcut Menu Path :
OMWN IMG – Materials Management – General Settings for Materials
Management – Valuation and Account Assignment – Account
Determination – Account Determination without wizard – Define Account
Grouping for Movement Types
For example, Vendor Consignment movement type is 411 and special stock K. You can
see that the Account modification is VBR.
For you to be able to configure the Valuation Class and G/L Account, you’ll have to wor k
with the Finance Department or FI Consultant as they need to provide you with all the
G/L Account for the Material Valuation Class.
The follo wings are the Inventory Transaction that you need to confi gure:
Define Single G/L Acc ount

Description Tranaction
Expense/revenue from consign.mat.consum. AKO
Expense/revenue from stock transfer AUM
Materials management small differences DIF
Purchase offsetting account EKG
Freight clearing FR1
Freight provisions FR2
Customs clearing FR3
Customs provisions (optional) FR4
External activity FRL
Materials management exch.rate diffs KDM
MM exchange rate rounding differences KDR
Price diff. offset. entry (cost object) (optional) KTR
Price differences (cost object hierarc.) PRK
Neutral provisions (optional) RUE
Gain/loss from revaluation UMB
Unplanned delivery costs (optional) UPF
Input tax VST
GR/IR clearing acct (mat. ledger) (old) (optional) WRY
Define Valuation Class t ies to G/L Ac count

Description Tranaction
Change in stock account BSV
Inventory posting BSX
Purchase account EIN
Purchasing freight account FRE
Offsetting entry for inventory posting GBB
Consignment payables KON
Cost (price) differences PRD
GR/IR clearing account WRX
Click the Account assi gnments button and from the system message, you will be able to
tell if there are errors in your Account assignments.
You can also check which G/L Accounts is tied to which Valuation Class by clicking the
button in transaction “OMWB”.
Enter the company code and click the Execute button.
The report will list all the Valuation Class under the G/L account.
Storage Location Indicator to allowed/disallowed Physical Inventory Freezing

Initial IMG Action : Usually Required
It is not necessary to have stock count for all the storage location. At time, certain storage
location might not be subject to stock-take and you can untick the field Freeze book
inventory.
Menu Path : IMG – Materials Management – Inventory Management and Physical Inventory
– Physical Inventory - Allow Freezing of Block Inventory Balance in Storage Location
‘ ‘ – Disallowed Physical Inventory Freezing
Tick – Allowed Physical Inventory Freezing
Configuration for Vendor Consignment

Vendor consignment means that the vendor will provides the materials and stores them on
your premises.
The advantage for this arrangement is that the vendor remains the legal owner of the
materials until you withdraw the materials from the consignment stores. Payment to the
vendor is then activated. There are less downtime as materials are always available at
your company premises.
The disadvantage is that you need to provide a warehouse, insurance, manpower to

manage the warehouse for the Vendor materials.
To use the SAP Vendor cons ignment, you have to do t he follow ings IMG:
Step 1: Act ivate Consign ment Prices via Info Records
OMEV IMG – Materials Management – General Settings for Materials
Management – Activate Consignment Prices via Info Records - Activate
Consignment Prices via Info Records
Step 2: Config ure the Consig nment Autom atic Posting Acc ount Code
OBYC IMG – Materials Management – General Settings for Materials
Management – Valuation and Account Assignment – Account
Determination – Account Determination without wizard – Configure
Automatic Postings
Description Transaction
Offsetting entry for inventory posting GBB
Consignment payables KON
Cost (price) differences PRD
You must define the Account Assignment for Consignment payables – KON
GBB and PRD can be optional as the G/L account code can be the same.
Business Process Flow for Vendor Consignment

There might be a slight difference with the business process of your company but overall,
your company will still have to go through the same SAP tcode.
1. First a contract will be drawn and sign between your company and the vendor. The
vendor will provide you with the materials price which the Purchaser will input to tcode
ME11 – Creating Info Records f or Consignment Stocks.
2. For any materials that you need from the vendor, the Purchaser will create a Purchase
Order with tcode ME21N – Create Purchase Order f or Consig nment. The system will
identify the Consignment PO by the Item category K which the Purchase enter in the
PO. In a consignment PO, no material price is required to be entered.
3. Once the Vendor delivered the materials to your company premises, the Store
personnel will entered a Goods Receipts with reference to the PO with tcode MIGO –
Goods Receipt for Purchase Order .
4. You can view the consignments for each materials with tcode MMBE – Stock
Overview. A line item with the field named Vendor consignment will appear. Double
click on the Quantity and you will be able to view the Vendor who supply the materials.
Any stocks that remain in the line item Vendor consignment belongs to the Vendor and
no payments is required. To view all the Open Consignment stocks, use tcode “MB54”.
5. To used
stocks the consignment
which stocks, the
is the field Unrestric tedPurchaser have to
used column. Thetransferred
Purchaserit will
to your
usedcompany
tcode
MB1B – Enter Transfer Posting with Movement type is 411, Special Stock ‘K’ and the
Vendor c ode that the materials you want to used (assuming that you have multiple
Vendor that supply the same materials). At this point, the system will read the PRICE
from the Vendo r Materials Info Record (ME12) and create a Financial documents.
After the transfer, the stocks belongs to your company and payment will be made
according to the agreement.
6. At the payment intervals agreed, Finance department will print the Consignment
Settlement list with tcode “MRKO” . The list will be passed to the Purchase Department
for verification. Once verified, Finance will do a Consignment Settlement with tcode
“MRKO” and the Vendor will be paid.
The Initial Inventory during Implementation

Task 1: Set the Initial MM Period for your Company Code
During the Initial MM Implementation, ensure that the start of the MM Period for the
company code is maintain in OMSY. This IMG will allows the user to start inputting the
Material Master Records which later allows them to input the Inventory Records.
Transaction : Menu Path : IMG – Logistics General – Material Master – Basis Settings
OMSY – Maintain Company Codes for Material Management
Maintain the Current Period (Start of your Implementation) and h it Enter.

For e.g. going live on 2004 01 (January 2004). Please note that 2004 01 doesn’t always
represent January 2004. It depends on how your period is begin setup by the FI
consultant. Some company go-live on July 2004 and the period begins 2004 01. So
remember to check how your company period is begin organized.
Subsequently, every end of the month, you will close the current month Inventory and Open
the Next Inventory Period with transaction MMPV. The Period is always the Next Period.
Transaction : Menu Path : SAP Menu – Logistics - Materials Management – Material

MMPV Master – Other – Close Period
To enter the Initial Opening Inventory

Transaction : Menu Path : SAP Menu – Logistics – Material Management – Inventory
MB1C Management – Goods Movement – Goods Receipt - Other
SAP have assigned movement type 561 as the initial Inventory value entry. For wrong
entry, enter
reverse. the the
After same information
Initial with
Inventory movement type
transferred, 562 and
no one shoulthe Inventory
d be figures
author ized will be
to used
561/562 anymore.
On the second screen the user just need to enter the Material and Quantity. To enter more
materials click on the Menu Edit – New it ems
Static v ersus dynamic data conversion

In general, data could be classified as begin either static or dynamic data.
Static data includes items that are relatively stable such as vendor master, material master,
BOM, routing, work centers, customer master, price agreement, material group, activity
prices, cost centers etc.
Dynamic data includes items such as inventory balances, A/R balances, A/P balances, GL
balances, Open Production Orders, Open Sales Orders, Open Purchase Orders and
Planned Independent Requirements.
In general, we will have lots of time to convert the static data but insufficient time to rush
the dynamic data into the system. This is because dynamic data must be converted with a
clear cut-off date. This means th at the balances must be that of the same point in
time in or der to ensure the integrity of data.
Where the volume of data in relation to the number of end users is high, we will consider
automating the conversion, provided that data is available from the old system.
If the volume is low or if data is not available from the present system, users should key the
data directly into SAP. This approach has an added and import ant benefit of tr aining
the end users in the operation of the SAP system.
A Sample note o n In ven to ry Bal ance Conversio n

This information will be extracted from the current system and uploaded into SAP
automatically. The conversion process will generate the following accounting entries:
 Dr Inventory Control Accounts

 Cr Inventory Conversion Control Account (e.g. 999999)
If done correctly, the balance in the Inventory Conversion Control Account should become
zero.
Both the existing system extraction program and the SAP batch input record formatting
program must be ready by Month 99 for the trail run.
Ap pen di x A : Th e Invent or y Good s Movem ent Confi gu rati on Li nks Expl ain
Now, let see what are the Inventory Goods Movement Configurations that are related
before the user can post any Goods Movement:-
1. Configure the Valuation Class (OMSK) which the user will then maintain it in transaction
MM01/MM02 – Accounting 1 View. The Valuation Class will allows the system to
post to the correct General Ledger Account in the Financial Accounting Modules.
2. Maintain the Storage Location by Plant (OX09) which the user will then have to specify
when they do any Inventory Posting with the Goods Movement transaction like MB1A,
MB1B, MB1C, MB01, MB31, MIGO. If you have accept the default configuration
Create Storage Location Automatically (OMB2, OMB3, OMJ8), then user does not need
to create the Storage Location (MMSC) for the material manually every time they post a
new Storage Location for the material.
3. Set the Printer Determination (OMJ3 or OMJ4 or OMJR) if the user wish to print the
Material Document after Goods Movement have been successfully posted.
4. Maintain the Reason for Movement (OMBS) for the Material Scraps Movement type
551.
5. Optionally, you may want to Hide Unnecessary Fields by Movement Type (OMJX,
OMBW, OMCJ, OM9A) that your company does not need.
Ap pen di x B : Restr ic t t he Stor age Loc ati on fr om any Goo ds Movement
If you want to restrict the users from performing any Goods Movement, first Flag for
Deletion the Material Storage Location and then set the Message M7 127 to ‘E’.
Step 1 :- Flag for deletion the Sloc

To Flag fo r Deletion the Storage Location, goto transaction MM06
Next, tick the Storage location and Save
Step 2 :- Set Message M7 127 to ‘E’ (Error)

OMCQ IMG – Materials Management – Inventory Management and Physical
Inventory - Define Attributes of System Messages
This SAP Message will pop-up when t he users try to do a Goods Movement :-
Material Testing Plant SLOC flagged for deletion
Message no. M7 127
The material master record V has been flagged for deletion.
Depending on the system setting, the system issues either a warning or an error message.
• If the message is a warning ( W), the system will accept your entry, but
simultaneously issues a warning to prevent you from making the wrong entry.
• If the message is an error message ( E), the system will not accept your entry.
Ap pen di x C: Al lo ws /Disall owed Good s Movem ent Posti ng to Previo us Period
This transaction code allows you to control the Inventory Posting for the Current and
Previous Period (SAP terms for month) after the Month-end Closing.
The purpose of setting this indicator is to stop the user from posting any Inventory
transaction after the beginning of a new Month. This is usually a request from Finance
department because they will not be able to determined the Previous Month stocks figures
if user to continue to post entry to the previous month as Financial Document will be
created for any valuated materials that the user post to the previous month.
Menu Shortcut Menu Path :

MMRV SAP Menu – Materials Management – Material Master – Other – Allow
Posting to Previous Period
To prevent user from posting to the Previous Month, untick Allow posting to
previous per. and tick Disallow backposti ng generally as shown below and vice
versa.
Ap pendi x D: How to Arch iv e the Materials Do cu men ts ?

In Inventory Management, for every transaction posting, the system will create a Material
Documents. After a period of time, depending on your company transaction, your database
will grow and deletion of passed data is required.
Archiving is normally done by the Basis team, but you may required to do it, if you does not
have one (For e.g. SAP server is outsource to a Data Center). Upon successful deletion,
the Basis person or the Data Center will backup the archive files into a TAPE before
removing it from the SAP server.
Archiving the Material Documents requires two steps:

1. Create the Archive files – the system will CREATE an archive files that reside in the
SAP server.
2. Actual Deletion from the SAP database – the system will READ the archive files that
have been created and remove them from the Inventory database (or tables).
First check yo ur Material Documents Li fe. The formula is:

Current date – Material Documents Posting Date > Material Documents Life
OMB9 Physical Inventory – Define Document Life
Ar chivin g the Materials Docum ents:

Transaction : Menu Path : SAP Menu – Tools – Administration – Administration –
SARA Client Administration - Archiving
Type the Material Documents Object name is “MM_MATBEL” and Hit Enter.
Figure 1:
Figure 2: If you are doing it for the first time, click the Customizing button.
Figure 3: In the Archiving object-specific Customizing, Click the Technic al settings
Figure 4: Customize the Test Variant to Test and the Production Variant to Production:
TestSessVariant – Click Variant -> Values -> Tick Simulation and Log
Prod. Session Variant – Click Variant -> Values -> Tick Log
Save it and return to the Archiving Main Menu (Figure 2).
Figure 5: With the above settings, you can now proceed to do the Archiving. At the Main
Menu (Figure 2), Click the Archiv e button. Type in a Variant Name and click the Maintain
button.
Figure 6: Depending on your company Financial Year Configuration, your document year
might not follows the normal Calendar year. For e.g. 200401 refers to July 2003 and
200412 refers to June 2004. Save your Variant.
To start the Archive, Click the Start button in Figure 5, then follows by the
Save button.
The Start date will change to Green Light and you can now click the Execute button.
Check the Spool Request and reconfirmed that the Archive Material Documents are those
that you wish to delete.
Actu al Deletion fr om the SAP Database
If everything is ok, you can proceed to Figure 2 and click the Delete button to start the
Actual Delete from the SAP database. Click the Archiv e selectio n to select the Archive
files.
Tick the Archiv e files and hit the Enter key. Next maintain the Start date button as
Immediate. You can tick the Test session button to do a test first before starting the
Actual Delete. Once you are comfortable, Untick the Test session button and do an
Actual run and the Material Documents will be Physically deleted from the database.
When
random the Deletion
check with Jobs is completed,
transaction MB03 toyou canthat
verify check the Archive
those spool log in tcode SP01 and
documents does not do a
exists anymore.
Ap pen di x E: Con fi gu re the Cycle Coun t i n SAP

Complete the system settings for the physical inventory method of cycle counting by
defining the individual cycle counting indicators for the given plant.
The cycle counting indicators are used to group the materials together into individual
categories.
Normally, the cycle counting indicators are assigned when an ABC analysis is run.
However, different indicators can be defined, if necessary.
1. Define the allowed cycle counting indicators in the plant.

2. Make the required settings for each indicator.
Remember that the total of the percentages must be 100 if you want to assign the indicator
to the individual materials as part of an ABC analysis.
Change Settings fo r Cyclic Countin g
Transaction: Menu Path: IMG – Materials Management – Inventory Management and

OMCO Physical Inventory – Physical Inventory – Cycle Counting
To set the cyclic count indicator automatically

If you does not wish to set the A,B,C,D indicator manually, SAP can help you to set it
automatically. However, take note that the auto SAP A,B,C,D classification is based on the
consumption/usage value or requirement (forecast) value.
For Example,
In a given plant, 200 materials are subject to the cycle counting physical inventory
procedure.
In Customizing for Inventory Management, the following percentage allocation has been
defined for the plant:
A materials: 50%
B materials: 25%
C materials: 15%
D materials: 10%
In the cycle counting analysis, the materials are sorted by consumption. After completion of
the analysis, the cycle counting indicator is assigned as follows:
The first 3 materials (sorted in descending order according to consumption) represent 50%
of the consumption and have the indicator A.
The
The next
next 12
49 materials
materials represent
represent 25%
15% of
of the
the consumption
consumption and
and have
have the
the indicator
indicator B.
C.
The remaining 136 materials represent the rest (10%) of the consumption and have the
indicator D.
Transaction: SAP Menu Path: Logistics – Materials Management – Inventory

MIBC Management – Physical Inventory – Special Procedures – Cycle Counting
– Set CC Indicator
Note:-
If you tick the All sto ck materials, all material includi ng thos e who do not have the
cycli c count i ndicator are also taken.
Field explanation:
Field Descrip tion Mandatory
Plant Plant code for which the cycle count indicator No, but at least one
is to be put. selection option to be
given.
Material
Type To enter
count the material
indicator type
is to be put.for which cycle No, but atoption
selection least one
to be
given.
Materials Tick this box if even the material with deletion No. Why include Material
with flag are also to be included. that is already flag for
deletion flag deletion?
Al l sto ck If this check box is ticked, all material including No, but recommend.
materials those who do not have cyclic count indicator
are also taken.
Key figure Select radio button “consumption usage” if Yes
radio button past consumption should decide indicator or
select “requirements”
indicator. if forecast
Also put from to decide
and to date the
for option
chosen default is 3 months past and 3 months
future respectively.
Change cc Put tick if you want to do changes for the No
percentages default percentages set for A, B, C, D
check box
Processing Use radio button “Display list first” or “update Yes
radio button without list”. The names show what is the
function
Create the Physical Inventory Document for Cycle Counti ng

For every cycle count pre-determined period, run this program to create the physical
inventory document for your cycle count. The rest of the process is exactly like the physical
inventory count.
Transaction: SAP Menu Path: Logistics – Materials Management – Physical Inventory
MICN – Special Procedures – Cycle Counting – Create Phys.Inv.Docs
Processi ng Step fo r MICN - Create Phys.Inv.Docs:

 Press the Execute button
 On the next screen, press the Generate session button
 On the next screen, select the session and press Process session button
 On the pop-up screen, select Radio button for Process / Foreground OR
 Background
Press the Process button
 Click on the Enter key to refresh the screen
 To view the completed job, press the Log icon (or F7). Check the logs for any
errors.
 Double click on the screen to see the physical inventory document numbers
The transaction t o carry out and enter the Physical count into SAP
Transaction Descrip tion Menu Path

MI02 Change Physical Inventory Logistics – Materials Management
Document – PhysicalDoc.
Inventory Inventory – Physical
– Change (Put year
as fiscal year and not Calendar
year.
MI03 Display Inventory Document Logistics – Materials Management
– Physical Inventory – Physical
Inventory doc. – Display (To print
physical inv doc. – Print)
MI11 Recount Logistics – Materials Management
– Physical Inventory – Physical
Inventory doc – Recount
MI04 Enter Inventory Count (recounting not without

Logistics – Materials counting)
Management
– Physical Inventory – Inventory
Count - Enter
MI05 Change Inventory Count Logistics – Materials Management
– Physical Inventory – Inventory
Count - Change
MI07 Post Difference Logistics – Materials Management
– Physical Inventory - Difference –
Post
MI20 Different List Logistics – Materials Management

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8/17/2019 Inventory Conﬁguration

Table of Cont ents

Default the “Delivery

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IMG Menu – The Startin g Point

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Start of the SAP MM Inventory Management Config uratio ns

The Basic Material Master Confi guratio n : Unit s of measurement

Transaction : Menu Path : IMG – General Settings – Currencies – Check units of

Click the button Units of measurement to see the UOM settings.

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Where does the us er maintain t he UOM?

Maintain the Base unit of measure

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Maintain the UOM Conversion

Indust ry Type for Material Master

The SAP default industry sectors are :

Define new o r Change the existing Industry Type

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Default the Material Industry Type

IMG Shortcut : Menu Path : IMG – Logistics General – Material Master –

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Delete or Add in Storage Location fo r th e new Plant

Configure the Storage Location

Click the New entries button to enter a new Storage Location.

General Plant Setti ngs in Inventory Management

Menu Path : IMG – Materials Management – Inventory Management and Physical

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Double click o n the Plant to view the next screen.

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Define the Attr ibut es of System Messages

An example is given in Appendi x B: (Restric t t he Storage Location fr om any Goods

Transaction Menu Path : IMG - Logistics – Materials Management – Inventory Management

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Transaction : Menu Path : IMG - Logistics – Materials Management – Inventory Management

Step to configure the SAP System Messages

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Start of the Number Range Configur ations

Define Number Ass ignment for Account ing Documents

Transaction : Menu Path : IMG – Materials Management – Inventory

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Configure t he Financial Document Type wit h t he relevant Number Range

 Double click on Type AA to view the details

 Copy down the Number range No For e.g. 04

To maintain the number assignment for accounting documents.

 Input your company code and click

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• WI for inventory differences

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Transaction : Menu Path : IMG – Materials Management – Inventory Management and

Refer to OMBA – Allocate Document Type to Transaction

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Define Number Assignment for Reservations

You can only used internal number assignment for reservations.

Transaction : Menu Path : IMG – Materials Management – Inventory Management and

(a) OMJK - Maint ain Number Range Interval

(b) No. range res/dep.rq

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Start of t he Individu al Fields IMG Setting s

Field Selection for Goods Movements Initial/Header Screens